Comments on: Tenancy deposit protection avoidance http://www.landlordlawblog.co.uk/2007/03/17/tenancy-deposit-protection-avoidance/ From landlord and tenant solicitor Tessa Shepperson Fri, 10 Feb 2012 17:12:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anonymous http://www.landlordlawblog.co.uk/2007/03/17/tenancy-deposit-protection-avoidance/comment-page-1/#comment-59 Anonymous Wed, 11 Apr 2007 13:33:00 +0000 http://www.landlordlawblog.co.uk/?p=103#comment-59 I questioned one landlord who said that he would have an admin fee of £35 to enter the house and then another £35 to get the deposit back! £70 in their pocket for a few forms and a postage stamp!<br/><br/>In fact many landlords are now considering not taking deposits at all and simply making a one-off charge of approximately £180 as an administrative fee to cover the vetting of tenants, the drafting of contracts and the check-in and checkout inventories - this figure is the currently recommended figure by the Guild of Residential Landlords. (apparently?!)<br/><br/>These "work-arounds" need to be exploited as landlords are trying to get more than their money's worth!<br/><br/>They are also upset that they don't get interest on our bonds - funny that seeing as it isn't their money to make cash from!! I questioned one landlord who said that he would have an admin fee of £35 to enter the house and then another £35 to get the deposit back! £70 in their pocket for a few forms and a postage stamp!

In fact many landlords are now considering not taking deposits at all and simply making a one-off charge of approximately £180 as an administrative fee to cover the vetting of tenants, the drafting of contracts and the check-in and checkout inventories – this figure is the currently recommended figure by the Guild of Residential Landlords. (apparently?!)

These “work-arounds” need to be exploited as landlords are trying to get more than their money’s worth!

They are also upset that they don’t get interest on our bonds – funny that seeing as it isn’t their money to make cash from!!

]]> By: Tessa http://www.landlordlawblog.co.uk/2007/03/17/tenancy-deposit-protection-avoidance/comment-page-1/#comment-58 Tessa Sun, 08 Apr 2007 09:24:00 +0000 http://www.landlordlawblog.co.uk/?p=103#comment-58 The new tenancy deposit scheme only applies to deposits taken after 6 April 2007, and to deposits taken earlier where the tenants are given a new tenancy agreement. The new tenancy deposit scheme only applies to deposits taken after 6 April 2007, and to deposits taken earlier where the tenants are given a new tenancy agreement.

]]> By: Cate http://www.landlordlawblog.co.uk/2007/03/17/tenancy-deposit-protection-avoidance/comment-page-1/#comment-57 Cate Sat, 07 Apr 2007 20:41:00 +0000 http://www.landlordlawblog.co.uk/?p=103#comment-57 To what extent does this new legislation cover existing tenants with an assured shorthold? It's been 9 months since a old housemate moved out once the contract ended...and her deposit still hasn't been returned. As current tenants, do we have any rights under this legislation for when our contract ends, or is it simply for those entering into ASTs after April 2007? To what extent does this new legislation cover existing tenants with an assured shorthold? It’s been 9 months since a old housemate moved out once the contract ended…and her deposit still hasn’t been returned. As current tenants, do we have any rights under this legislation for when our contract ends, or is it simply for those entering into ASTs after April 2007?

]]> By: Simon Parrott http://www.landlordlawblog.co.uk/2007/03/17/tenancy-deposit-protection-avoidance/comment-page-1/#comment-46 Simon Parrott Thu, 22 Mar 2007 08:58:00 +0000 http://www.landlordlawblog.co.uk/?p=103#comment-46 Dear Tessa<br/>I understand that the interest rate to be paid by the Custidial scheme will be set on a formula of 2.32% below Bank of England Base Rate. The interest will be paid to whoever is contracually entitled to it. On this basis, if the landlord prepares his tenancy agreement carefully to give him the contractual right to the interest, I see no reason why anyone should even think about trying to avoid the scheme. The Landlord will lose out on about 1% of deposit interest, but so what - compare that to the loss of control over the tenant which is inherrent in the payment of the deposit and the possibility of the penanlty if the landlord's scheme geos wrong. It's a no-brainer for the vast majority of individual landlords to use the Custodial scheme.<br/>Simon Parrott Dear Tessa
I understand that the interest rate to be paid by the Custidial scheme will be set on a formula of 2.32% below Bank of England Base Rate. The interest will be paid to whoever is contracually entitled to it. On this basis, if the landlord prepares his tenancy agreement carefully to give him the contractual right to the interest, I see no reason why anyone should even think about trying to avoid the scheme. The Landlord will lose out on about 1% of deposit interest, but so what – compare that to the loss of control over the tenant which is inherrent in the payment of the deposit and the possibility of the penanlty if the landlord’s scheme geos wrong. It’s a no-brainer for the vast majority of individual landlords to use the Custodial scheme.
Simon Parrott

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